1. If you want to invest your money for only a short period of time, then it is a good option. Since FMPs mature in a particular timeframe, you can get a scheme for as short as 15 days.

2. Do you want to play safe with your money? In that case, you should invest in fixed-return investments. But, do note, you are not given an assured return in the case of an FMP. Though chances are you will get a slightly higher return than what you would get in a bank fixed deposit.

3. Invest money you are quite sure you are not going to need. You can only withdraw the money during pre-set time periods. It is not an open-ended fund that allows you to exit (sell your units) whenever you want.

4. If you think interest rates are going to rise, what you can do is invest in FMPs that will mature quickly. In this way, your money will not be blocked for too long and you can reinvest it later at a higher interest rate.